John Bean Technologies Corporation (NYSE: JBT) has declared the pricing of the offering of $350 million total principal amount of 0.25% convertible senior notes due 2026 in a private offering. The firm has also provided the buyers who first buy the notes an option to buy up to an extra $52.5 million aggregate principal amount of the Notes within 13 days starting on, and including, the initial execution date of the Offering.
The firm has disclosed that it has decided to utilize the net profit from the offering to pay the cost of the convertible note hedge transactions. The firm is anticipating utilizing the remaining net profit from the Offering for general business purposes. The business purposes include the possible purchase or other strategic investments.
Furthermore, it has been disclosed that the Notes will be senior unsecured commitments of the firm. The Notes will bear an interest rate of 0.25% per year, outstanding at six-monthly intervals in arrears on May 15 and November 15 of each year, commencing on November 15, 2021. Additionally, the maturity date of the Notes is May 15, 2026, unless earlier transferred, converted, or buyback.
The Notes will be convertible after the execution of certain conditions. The firm will fulfill any conversion by paying cash up to the total principal amount of the Notes to be converted and by paying or delivering. In addition to this, the firm has signed privately negotiated convertible note hedge deals with certain dealers. The deal comprises certain initial buyers and/or their corresponding partners and/or other financial institutions.